Small pensions: the revaluation promised will not happen – Le Nouvel Observateur

Small pensions: the revaluation promised will not happen – Le Nouvel Observateur

Paris (AFP) – The poorest pensioners, who would see their pensions increase to 1 October, will be housed in the same boat as the others: because of low inflation, they will ultimately not revalued

small pensions below 1,200 euros, the government had spared the freezing measure decided last spring will not be uprated in three weeks, due to the “low inflation” finally in 2014, said Friday the Department of Health told AFP.

The government initially expected inflation of 1.1% this year, which would have represented an average increase of about 5 euros per months for small pensions.

The Finance Minister Michel Sapin, has revised the inflation forecast to 0.5% in 2014.

Due to the application mechanical calculation rules (which take into account the revaluation and inflation applied in 2013), these pensioners will therefore not have a euro more in their wallets, as pointed out in the morning Europe 1 .

The pensions of retirees minimum age (approximately 572,000 beneficiaries in late 2011) will benefit the other hand, “as the government had promised, a boost in October,” the ministry said without indicating the size of the revaluation.

As part of the plan of 50 billion euros in savings by 2017, presented in April, the government decided the pension freeze up in October 2015, which would generate $ 1.3 billion in savings.

Under pressure from members of the majority, the government had promised to spare the needy pensioners freezing measure.

– “Five euros, it was not nothing” –

In all, those are the some 15 million French retirees will not see their pensions increase

.

In fact, this amounts to a freeze of 18

months since the date of annual pension increases had already been shifted this year from April to October on the occasion of the pension reform.

“Five dollars more per month for the most disadvantaged, it was not nothing!” railed Annie Little, national secretary of the National Union of Pensioners and the elderly (UNRPA), noting that 2 million pensioners live below the poverty line (987 euros per month in 2012).

“We can not revive the economy without restore purchasing power to the people,” Does -she said. However, “many French are already unable to cope with substantial tax increases,” said she pointed to AFP.

The stabilization of the smaller pensions easier somehow the task of government. The partial revaluation of small pensions represented indeed a real headache for the administration.

A revaluation of pensions only less than 1,200 euros promised very complex, had also warned the President of the National Pension Insurance Fund (CNAV), Gérard River.

It was a “gas factory”, confirmed to AFP Philippe Pihet, FO Confederal Secretary, in charge of pensions. “It seemed somewhat unrealistic,” he said.

However, “the government could revalue pensions when inflation was more important, he had a year and a half to do it,” a- he estimated, noting that the next increase will not take place before October 2015.

“In absolute terms, five euros a month is a very small amount,” Has he acknowledged. “Unfortunately, for many retirees, it is not negligible. Some rely on to make ends months,” said Philippe Pihet.